On December 31, 2010, the Molly Company Recognized $12, 000

question 58

Multiple Choice

On December 31, 2010, the Molly Company recognized $12, 000 in revenue from rent of $5, 000 due in 2011 and $7, 000 due in 2012, all collected in advance from another company.Ignoring income taxes, if this error is not detected

• A)Retained Earnings at December 31, 2011, will be overstated by $7, 000
• B)Retained Earnings at December 31, 2011, will be understated by $7, 000
• C)Retained Earnings will be overstated by $12, 000 until the error is discovered
• D)Retained Earnings at December 31, 2011, will be understated by $12, 000

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Definitions:

Three-Dimensional Patterns

Structured arrangements or designs that have depth, height, and width, giving them a sense of volume or space.

Recessive

Referring to a gene that only influences the expression of a trait when paired with an identical gene.

Dominant

Referring to the most powerful, influential, or significant element or gene in a context or system.

Gene

A unit of heredity made up of DNA occupying a fixed position on a chromosome, which is responsible for the inherited characteristics in living organisms.